They also have to cover the cost to restore the unit to the original condition.  

We have allowed animals both with a fee and without depending on property, and have added to the lease that tenants agree to an automatic use of security deposit for a professional deep clean and restoration to a non-animal inhabited state.

My take is: 1) Especially with these older houses, the ARV to be gained is in restoring them to they're original beauty.

Would it be cheaper to restore it or just install laminate floors?

I like that I can talk about repairs as opposed to rehab as opposed to restoration.

Even when I proved that to them, they still wouldn't restore it for 3 months.

If so, in order to restore your eligibility if you don't have enough left over to buy the next property, you would need to refinance the 1st property into another type of loan. i.e. a conventional loan or Fannie Mae / Freddie Mac type of loan.

The "infinite rate of return" is not considering the fact that you have to have some liquidity left for reserves because the cash flow simply doesn't come in fast enough to handle the sewer line repair or losing 3 months of rent while restoring your wrecked property after a problematic tenant.BRRRR is a great strategy, but most of the time, people don't look at all of the moving pieces.

Start making money from another way, a job that you can save and then invest in Real Estate, start with something small, restore and sell .

But, I'm also seeing a lot of new multi-family developments, as well as a regular stream of cheap distressed SFR's that show back up on the MLS restored and selling fast at higher prices.